A trading session at the MB Securities Company. (Photo: VNA)Hanoi (VNA) - The stock market will likely continue itslosing streak this week as investors stay cautious ahead of the US FederalReserve’s meeting. The sharp drop in oil prices during the last three sessionswill also be a dampener, analysts say.
The benchmark VN Index on the HCM Stock Exchange fell 0.5 percentto finish at 712.21 points on March 10. The index recorded a total fall of 0.6 percentafter the last two trading days.
The two-day losing streak also erased all gains the VN Index hadmade in the previous four-day period. It closed down slightly below theprevious trading week’s ending level of 712.62 points.
On the Hanoi Stock Exchange, the HNX Index rose 0.5 percent onMarch 10 to close the last trading session at 88.13 points. The northern marketindex rallied total 1.8 percent in four days and gained 1.7 percent week onweek.
Last week’s daily average trading volume fell 3.1 percent tonearly 236.7 million shares, while daily average trading value increased by 8.8percent to 4.18 trillion VND (186 million USD).
Foreign investors recorded a net sell value of 131.26 billion VND inVietnam’s stock market, which was a big reverse compared to a net buy value of 349.2billion VND made in the previous trading week.
The fact that the VN Index fell through the level of 715 pointsshowed investors’ sentiment was low as they tried to offload parts of theirinvestment portfolios to avoid upcoming negative effects, analysts at BIDVSecurities Corp (BSC) noted.
These effects would be caused by international macroeconomicfactors, including the volatility of crude prices and the expectations for a USinterest rate increase, BSC added.
“The stock market’s conditions will remain negative this week. TheVN Index may recover slightly in the first one or two days, but its generaldirection is downward.”
Investors will highly pay attention to the US Fed’s meeting thisweek, in which US officials are expected to raise interest rates for the firsttime this year.
“As the US employment rate in February was robust on March 10’sreport, the Fed will undoubtedly increase the interest rates in the comingdecision,” said Nguyen Ngoc Lan, head of brokerage division at the AgribankSecurities Company.
There are two scenarios for Vietnam’s stock market in the case theUS central bank decides to raise the rates, Lan said.
If the US interest rates are lifted by 0.25 percentage point, themost expected development, the impact on Vietnamese stocks will be low asinvestors have all prepared for the decision, she said.
But if they go up by 0.5 percentage point, Vietnam will seenegative impacts on its securities market with foreign investment moving out ofthe local market, Lan said.
Nguyen Hong Khanh, head of the market analysis division atSacombank Securities Company, said that the incoming interest rate hike is acertainty and the US Fed is expected to lift its rates two more times thisyear.
“Increased interest rates will make foreign investors to switchtheir capital from emerging markets to the US to benefit from higher depositrates, thus emerging currencies will have to bear a lot of depreciationpressure,” Khanh said.-VNA
The benchmark VN Index on the HCM Stock Exchange fell 0.5 percentto finish at 712.21 points on March 10. The index recorded a total fall of 0.6 percentafter the last two trading days.
The two-day losing streak also erased all gains the VN Index hadmade in the previous four-day period. It closed down slightly below theprevious trading week’s ending level of 712.62 points.
On the Hanoi Stock Exchange, the HNX Index rose 0.5 percent onMarch 10 to close the last trading session at 88.13 points. The northern marketindex rallied total 1.8 percent in four days and gained 1.7 percent week onweek.
Last week’s daily average trading volume fell 3.1 percent tonearly 236.7 million shares, while daily average trading value increased by 8.8percent to 4.18 trillion VND (186 million USD).
Foreign investors recorded a net sell value of 131.26 billion VND inVietnam’s stock market, which was a big reverse compared to a net buy value of 349.2billion VND made in the previous trading week.
The fact that the VN Index fell through the level of 715 pointsshowed investors’ sentiment was low as they tried to offload parts of theirinvestment portfolios to avoid upcoming negative effects, analysts at BIDVSecurities Corp (BSC) noted.
These effects would be caused by international macroeconomicfactors, including the volatility of crude prices and the expectations for a USinterest rate increase, BSC added.
“The stock market’s conditions will remain negative this week. TheVN Index may recover slightly in the first one or two days, but its generaldirection is downward.”
Investors will highly pay attention to the US Fed’s meeting thisweek, in which US officials are expected to raise interest rates for the firsttime this year.
“As the US employment rate in February was robust on March 10’sreport, the Fed will undoubtedly increase the interest rates in the comingdecision,” said Nguyen Ngoc Lan, head of brokerage division at the AgribankSecurities Company.
There are two scenarios for Vietnam’s stock market in the case theUS central bank decides to raise the rates, Lan said.
If the US interest rates are lifted by 0.25 percentage point, themost expected development, the impact on Vietnamese stocks will be low asinvestors have all prepared for the decision, she said.
But if they go up by 0.5 percentage point, Vietnam will seenegative impacts on its securities market with foreign investment moving out ofthe local market, Lan said.
Nguyen Hong Khanh, head of the market analysis division atSacombank Securities Company, said that the incoming interest rate hike is acertainty and the US Fed is expected to lift its rates two more times thisyear.
“Increased interest rates will make foreign investors to switchtheir capital from emerging markets to the US to benefit from higher depositrates, thus emerging currencies will have to bear a lot of depreciationpressure,” Khanh said.-VNA
VNA
